NOTE 11 — STOCK-BASED COMPENSATION

In June 2015, the Company granted to employees, directors and certain consultants options to purchase an aggregate of 2,502,500 shares of the Company’s common stock at an exercise price of $1.67 per share under the Company’s 2013 Incentive Compensation Plan (the “Plan”). The options, which expire in June 2025, vest 25% on each of the first four anniversaries of the grant date. The Company has valued the options at $2,752,750 using the Black-Scholes option pricing model.

In September 2015, the Company issued 88,235 shares of fully vested common stock, or $120,000 at the then closing price on the grant date, as additional compensation to E. Malcolm Gosling, President and CEO of GCP.

Stock-based compensation expense for the three months ended September 30, 2015 and 2014 and for the six months ended September 30, 2015 and 2014 amounted to $458,450 and $208,808, respectively, and $698,390 and $400,264, respectively. At September 30, 2015, total unrecognized compensation cost amounted to $3,773,776, representing 5,638,467 unvested options. This cost is expected to be recognized over a weighted-average vesting period of 2.78 years. There were 612,989 options exercised during the six months ended September 30, 2015 and 428,983 options exercised during the six months ended September 30, 2014. The Company did not recognize any related tax benefit for the three months ended September 30, 2015 and 2014 from option exercises, as the effects were de minimis.